Deutsche Bank Reaches Settlement with Kirch Family

Settlement Will Hit Bank's 2013 Fourth-Quarter Earnings

By

Eyk Henning

Updated Feb. 20, 2014 1:44 p.m. ET

FRANKFURT—Deutsche Bank AG Thursday reached an agreement to settle a 12-year legal battle with the heirs of late media mogul Leo Kirch, chipping further away at a backload of pending litigation that has weighed on the bank's outlook.

Germany's largest bank said it would pay €775 million ($1.06 billion) plus an undisclosed sum in interest and reimbursement of costs, which people familiar with the matter said would bring the payment slightly above €900 million, one of the largest civil agreements in European history. The...